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The Blockchain Bubble Will Pop, What Next?

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Re: The Blockchain Bubble Will Pop, What Next?

#231

Post by divan »

albertgoeswoof wrote: post #32
divan wrote: post #10

I receive a salary in cryptocurrency for quite a long time, and I always try to be as objective and unbiased about articles on the future of blockchain and cryptocurrencies as much as I can. But articles like this truly disappoint me because there is no actual reasoning for such a strong and confident statement in the title. The whole article just says that a single encounter with a not-the-cool-tech-guy confirmed au…

getting your salary paid in crypto currency is nuts. But fair play to you. How do you pay bills? What cryptocurrency do you get? How do you / your employer handle currency fluctuations?

To be more precise I have a choice of being paid fiat/crypto (it's ETH) in any ratio I choose. So it can be 100%/0%, 50%/50% or 0%/100%. For now I'm using 50%/50%, so I'm not completely out of the "classic" financial system :) But I know people who are.

Re: The Blockchain Bubble Will Pop, What Next?

#232

Post by arisAlexis »

smsm42 wrote: post #198
arisAlexis wrote: post #71

Earlier quoted context omitted.

doesn't seem that you have done a lot of research on the subject really.

You are wrong, I did a lot of research, but you obviously did so much more that it would be easy for you to answer my questions. Hopefully, one day your busy schedule would allow you to do it. It is a pity for now it only allowed to post a content-free comment.

should get you thinking why there is so much hate for blockchain and at least be a contrarian here. What can I tell you? Read books about Bitcoin and Ethereum? The "how blockchain will help people" is a huge subject. Did you spend hours/days/months thinking about how this can affect governments, global title deeds, transparent balance sheets, supply chains and well...voting too? If you think you ever in your life had to deal with corruption or simple mistakes then you can think of a blockchain solution. Is that what you wanted to hear? Asking about "how the internet will affect our lives" in 1995 would be the same, but it would be better first to read about what exactly it is. So you went to this OSCON..

Re: The Blockchain Bubble Will Pop, What Next?

#233

Post by arisAlexis »

greggman wrote: post #57
mortdeus wrote: post #47

Earlier quoted context omitted.

blockchain is useful outside the context of cryptocurrencies because it represents a verifiable chain of custody. For example, imagine how blockchain could solve the problem of a patient who has control of their health records. In the current system we have an issue where anytime you move somewhere away from your doctor, the new doctor you see has to retrieve records directly from your doctor because there is no way…

How does block chain solve this problem any more than a plain old text file with your medical history? IIUC the only thing keeping bitcoin's blockchain trustworthy is millions of people mining new coins and therefore distributively verifying the blockchain. Who would be doing that for your medical records and what would their incentive be to do it?

you can also send messages with pigeons, why use internet and whatsapp at all?

Re: The Blockchain Bubble Will Pop, What Next?

#234

Post by arisAlexis »

LAMike wrote: post #75
arisAlexis wrote: post #72

Earlier quoted context omitted.

we are -80% from ATH, I don't understand why peoppe talk about the bubble will burst in the future. It happened already.

Bitcoin down 80%?

when it was at 5800 and ATH was around 21000? kind of yes

Re: The Blockchain Bubble Will Pop, What Next?

#235

Post by aiCeivi9 »

vkou wrote: post #205
speedplane wrote: post #200

Earlier quoted context omitted.

The simple feature of reducing settlements from days into seconds is by itself a great use-case. However, there is a lot of structural incentives against it. If you're a big bank and make nice transaction fees because your clients trust you to make a secure, legal, and successful transaction, you probably don't want blockchain, because it's a threat to your business model. That's certainly one of the major reasons it…

> The simple feature of reducing settlements from days into seconds is by itself a great use-case. The reasons for why settlements take days, and not seconds, is procedural, not technical. If the financial world wanted instant settlements, we would have had them decades ago. The financial world optimizes for intent and compliance, not speed. This is why settlements take days, and why cryptocoins aren't very interesti…

> If the financial world wanted instant settlements, we would have had them decades ago.

As a confirmation - they wanted it and they have it: https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA...

Re: The Blockchain Bubble Will Pop, What Next?

#237

Post by tialaramex »

jmknoll wrote: post #214
vkou wrote: post #205

Earlier quoted context omitted.

> The simple feature of reducing settlements from days into seconds is by itself a great use-case. The reasons for why settlements take days, and not seconds, is procedural, not technical. If the financial world wanted instant settlements, we would have had them decades ago. The financial world optimizes for intent and compliance, not speed. This is why settlements take days, and why cryptocoins aren't very interesti…

Can you expand on this a little more? Why does the financial sector want settlements to take longer?

Invariably for some fraction of transactions you'll later find out the settlement shouldn't have been executed. It doesn't matter whose "fault" that is, either way somebody will get screwed when this happens. If you wait longer, you may detect this before settlement completes and nobody gets screwed.

In my country there's a scam where people find out you're buying a house through a particular solicitor with a large cash transfer, then they send you an email or even a physical letter saying there's a problem, the solicitor just found out their firm got a new bank, or whatever, please transfer the house money to the new account. Of course it's a lot of money so most people will want to check this is right - they provide their phone number on the message. This number, of course, is part of the scam and a "secretary" will answer saying your solicitor is busy right now, but yes, they're very sorry, the message is genuine and please use the new account details.

The large sums involved mean this scam is very lucrative even if it doesn't work on say, 99% of potential victims.

If the victim realises they've been scammed ten minutes after the transfer, chances are good the bank can fix it, because settlements aren't really instant. If they realise the next day, or two, or three days later, the money is gone. It went to a mule, who has already forwarded it, the police might arrest the mule if they can find them, but the mule doesn't have your money, they're just another sucker.

Re: The Blockchain Bubble Will Pop, What Next?

#238

Post by aiCeivi9 »

jasonwen wrote: post #212

There are two use cases at the moment that I can think off: 1. Proving origin and authenticity of a product through the supply chain (car parts, branded bags, wine). In China for example wine companies lose billions because of counterfeit wines. 2. Alternative currency for unstable countries - like Venezuela where everyone lost confidence in Bolivars due to massive inflation. Current valuations are hugely inflated an…

> Proving origin and authenticity of a product through the supply chain

How exactly is that supposed to work. For example I checked http://www.blockverify.io/ and it looks like it relies more on impossible to copy tag than on blockchain.

Re: The Blockchain Bubble Will Pop, What Next?

#239

Post by zaarn »

speedplane wrote: post #200
vinni2 wrote: post #193

Earlier quoted context omitted.

I thought the blockchain technology had the potential to help financial sector. Not the virtual currency itself but there are a lot of agreements, transactions and settlements which are done in a untrustworthy environment which makes it slow and resulting in settlements [0]. I thought this is also the reason why it takes so long to transfer money from one bank to another. I thought these processes could benefit from…

The simple feature of reducing settlements from days into seconds is by itself a great use-case. However, there is a lot of structural incentives against it. If you're a big bank and make nice transaction fees because your clients trust you to make a secure, legal, and successful transaction, you probably don't want blockchain, because it's a threat to your business model. That's certainly one of the major reasons it…

>But long term, banks will need to accept faster transaction times. Blockchain or not, it's ridiculous you need to wait days to transfer money when you can send email in milliseconds.

Already happening.

SEPA Instant is either being released or in trial phases. My bank is trialing it, a And banks offer me more in terms of personal security. If I lose my debit card, I get all damages reimbursed. If the bank gets hacked, there is insurance.

Unless I fuck it up myself, I'm going to be saved by the bank.

On the other hand, on Bitcoin I can fuck it up myself but if someone else fucks me up then I'm SOL and can go eat ham for all that Bitcoin cares.

For the average users the question of using Bitcoin has become irrelevant with SEPA Inst. Banks are faster with it and offer more features.

Re: The Blockchain Bubble Will Pop, What Next?

#240

Post by piva00 »

jmknoll wrote: post #214
vkou wrote: post #205

Earlier quoted context omitted.

> The simple feature of reducing settlements from days into seconds is by itself a great use-case. The reasons for why settlements take days, and not seconds, is procedural, not technical. If the financial world wanted instant settlements, we would have had them decades ago. The financial world optimizes for intent and compliance, not speed. This is why settlements take days, and why cryptocoins aren't very interesti…

Can you expand on this a little more? Why does the financial sector want settlements to take longer?

Risk aversion (against fraud, criminal activities, etc.) and also because a bank earns money as long as it can hold that money, every day that money is accruing interests so if you can hold on that money for longer it makes you more money without any downsides.
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